Did you know Zimbabwe’s Mining Sector accounts for 60% of its export revenue?

This sector plays a crucial role in the country’s economic growth. It offers many investment opportunities to investors, with a wide range of deposits of gold, platinum group metals (PGMs), lithium, chrome, coal, and diamonds. The government of Zimbabwe aims to develop a $12 billion mining industry. It hopes to bring more foreign investment. Despite many challenges, ongoing efforts and reforms have been made to attract investors and improve Zimbabwe’s economy. 

The blog will discuss the overview of the mining industry of Zimbabwe, why one should invest in different sectors of the mining industry (gold, platinum, lithium, chrome, steel, coal, diamond), with a detailed discussion of the recent events related to these sectors.

Overview of the mining sector 

Key reasons to invest in the mining sector of Zimbabwe: gold, platinum, lithium, chrome, steel, coal, and diamond

Latest news of each mining sector of Zimbabwe – gold, platinum, lithium, chrome, steel, coal, diamond

More than 40 minerals contribute to Zimbabwe’s economic growth. Its mining industry is rich and varied. The mining sector plays a crucial role in the exchange of foreign earnings and industrial development. Key resources for gold include PGMs, gold, lithium, chrome, coal, and diamonds. The government of Zimbabwe is helping investors by offering tax incentives, reducing administrative challenges, and encouraging different joint ventures. 

However, there are also many problems, such as inconsistent rules and poor infrastructure, that remain to lock away the full-scale growth of Zimbabwe’s economy. Reforms and foreign partnerships aim to address all these gaps and unlock the full potential of the mining sector.

Let’s take a look at the details of each now!

Key Reasons to Invest in the Gold Mining Sector of Zimbabwe

1. Zimbabwe has over 13 million tons of proven gold reserves. 

• It is one of Africa’s top gold producers.

1. The government supports investors with incentives, such as reduced royalties and tax breaks.
2. Mines like Freda Rebecca, Shamva, and Blanket have a promising future in terms of profitability.
3. Zimbabwe has a great market in South Africa and China.
4. Global gold demand is increasing day by day.

Top 10 gold producers in Zimbabwe

1. Freda Rebecca
2. Blanket Mine (Caledonia Mining)
3. RioZim (Renco Mine)
4. Kuvimba Mining House (Shamva, Jena, Elvington Mines)
5. How Mine (Metallon Corporation)
6. Mazowe Mine (Metallon Corporation)
7. Pickstone-Peerless Mine
8. Eureka Gold Mine
9. Turk Mine
10. Golden Valley

Latest Developments

1. Famous Gold Mine – Freda Rebecca: The mine holds 2.4 million tons of proven reserves. By September 2011, production had reached 50,000 ounces of gold annually. 
2. Zimbabwe’s largest gold producer- Kuvimba Mining House: Kuvimba expects to produce 95,000 ounces of gold this year, with Freda Rebecca contributing 75,000 ounces. 
3. Zimbabwe’s next largest gold mine, Caledonia Mining’s Bilboes project: It has a projected value of $309 million and an internal return rate of 34%. The development will be done in one phase to improve financial efficiency.

Zimbabwe holds significant deposits of Platinum Group Metals, and mining takes place in key regions, such as the Great Dyke. The sector strengthens the economy and creates jobs. PGM exports bring in high revenue and increase foreign reserves. Investors are showing interest, and new projects are developing. The government supports growth and improves mining policies.

Key Reasons to invest in Zimbabwe’s platinum mining sector

1. Apart from government support, the country’s location advantage, skilled workforce, and diversified mining sector, the main attraction is its abundant platinum reserves. 
2. Zimbabwe is one of the world’s top platinum producers. It has been ranked third globally. 

• 9% of the total global output comes from Zimbabwe. 

• Zimbabwe’s platinum production grew by 6% in 2023 than previous year. 

• Platinum is Zimbabwe’s second-largest mineral export after gold. Together, they make up over 50% of export revenue. Mining contributes more than 75% of total exports. A market shortage and strong demand give hope for growth in platinum mining.

Leading platinum producers in Zimbabwe:

1. Impala Platinum and 
2. Anglo American.

Famous Mine Producers:

1. Zimbabwe Platinum Mines (Zimplats)
2. Mimosa Platinum
3. Aquarius Platinum 
4. Sibanye-Stillwater 

The Zimbabwe Platinum Mines (Zimplats) and Mimosa Platinum mine are among the largest and most productive PGM mines in the country.

Latest Developments

• Zimbabwe Expands Platinum Production to Meet Rising Global Demand: Zimbabwe is increasing its platinum production to meet the growing global demand. This is especially for green hydrogen use. Big mining companies have secured millions of dollars to expand their operations and start new projects. At the Selous PGM project, significant platinum deposits have been found. The first phase of manufacturing is expected to begin in 2025.
• Tharisa’s $131.3M Investment in Zimbabwe’s Karo Platinum Amid Market Challenges and Rising Demand: Tharisa has invested $131.3M in Zimbabwe’s Karo Platinum Project since June 2022. The total budget for Phase 1 is $391M. Due to low PGM prices, ore processing took time, which occurred from 2024 to June 2025.  Infrastructure and financing options are improving. 

Key Reasons to Invest in the Lithium Mining Sector of Zimbabwe

1. Zimbabwe holds some of the world’s largest lithium reserves, particularly in the Bikita and Kamativi regions. These areas offer high-quality lithium that can last for many years.
2. With the rise of electric vehicles and the need for renewable energy storage, the demand for lithium is growing. Zimbabwe’s abundant lithium makes it an important player in the global market.
3. The lithium industry in Zimbabwe is still in its early stages, which gives early investors a chance to benefit from the country’s untapped potential before it becomes fully developed.
4. Investors, such as Sinomine Resource Group, are investing $500 million to build lithium smelters. This will help process raw lithium into valuable products and create more chances for investment in refining.

Some Famous Mines

1. Arcadia Lithium Project, Harare
2. Bikita Minerals
3. zulu lithium and tantalum project

Latest Developments

• Zimbabwe Anticipates Lithium Prices to Justify $270 Million Project with China: The project plans to build a plant that will process 600,000 metric tons of lithium concentrate each year.

• Sinomine Decries Tough Zimbabwe Conditions Amid Lithium Price Slump: Sinomine aims to invest $500 million in a lithium smelter over the next five years.

• Zimbabwe Softens Stance on Local Lithium Processing After Price Collapse: In October 2024, Zimbabwe removed rules for lithium miners on local processing. This change follows a big drop in lithium prices. Before, miners had to submit plans by March 2024 to make battery-grade lithium in Zimbabwe.
• Zimbabwe’s Kuvimba Signs $310 Million Lithium Mine Deal: It will result in the production of 600,000 metric tons of lithium, hopefully.

Key Reasons to Invest in the Chromium Industry of Zimbabwe

• Zimbabwe has the second-largest reserves of chrome ore. 

1. The Great Dyke holds over 800 million tonnes of high-grade chromite. The resource ensures long-term supply and investment security.  
2. Zimbabwe’s chrome has a high Cr/Fe ratio. The ore is rich and requires less processing. Smelters prefer it for cost efficiency and superior quality.  
3. Foreign investors can own 100% of chrome mines. The government offers tax benefits and reduced royalties. Special Economic Zones provide extra incentives.  

Latest Developments

• Production Increase: The Zimbabwe National Statistics Agency (ZIMSTAT) says in 2023, chrome production rose by 4.37% compared to the previous year.

• Government Stake in Mining Projects: In December 2024, Zimbabwe announced plans to acquire a 26% free-carried stake in all new mining projects. It includes Chrome Ventures. The government also intends to negotiate similar stakes in operations that remain in place.
• African Chrome Fields’ Expansion: African Chrome Fields (ACF) is a leading chrome mining company in Zimbabwe. It has announced great expansion plans as it seeks to gain up to 25% of the global high-grade chrome concentrate market share by the end of 2026.
  

Key reasons to invest in the steel mining of Zimbabwe

1. Zimbabwe has vast iron ore deposits. Reserves are located in Redcliff, Kwekwe, and Mwanesi. The resource ensures long-term steel production.  
2. Zimbabwe is developing its steel industry. New plants, such as ZISCO Steel, are reviving production. Domestic processing increases profitability.  
3. Zimbabwe has access to SADC and COMESA markets. Rail and road networks link to regional ports. Steel exports can reach global markets efficiently.  

Latest Developments

• Dinson Iron and Steel Company’s New Plant: In June 2024, Dinson Iron and Steel Company (DISCO) started production at its new steel plant. Its target is to be Africa’s largest steelworks. For that, it has to produce 600,000 tonnes of carbon steel yearly. This is a big step for Zimbabwe’s industry.

• Economic and Environmental Considerations: The new steel plant is expected to help Zimbabwe’s economy. 

Infrastructure Developments: Zimbabwe’s state-owned railway has opened to private companies to increase the growth of the mining and steel industries. This will help increase volumes, which have dropped due to underinvestment. Companies like South Africa’s Grindrod have added locomotives and wagons to improve the transport of minerals and steel.

Key reasons to invest in the coal mining of Zimbabwe

1. Zimbabwe has over 26 billion tonnes of coal. Major deposits are in Hwange, Binga, and Gokwe. The resource ensures a long-term supply.  
2. Zimbabwe produces thermal and coking coal. Coking coal is ideal for steelmaking. The quality meets global industrial standards.  
3. The energy and steel industries require more coal. Asia and Africa are expanding coal-fired power. Zimbabwe can meet regional demand.  
4. Zimbabwe is near key regional markets. Rail links connect to ports in Mozambique. Coal exports are efficient and profitable.  
5. New power plants are increasing local demand. Thermal power projects need a stable coal supply. Investment in coal supports energy security.  

Latest Developments

• Government’s Stake in Mining Projects: In December 2024, Zimbabwe announced plans to take a 26% stake in new mining projects. The government has full support here. 

• Environmental and Safety Concerns in Hwange: Hwange is a key coal mining area in Zimbabwe, facing significant environmental challenges, including underground coal fires.

• Coal Mining Licenses and Energy Strategy: Despite the global shift toward cleaner energy, Zimbabwe continues to issue licenses for new coal mining projects to help generate electricity. It gets more reliable when droughts reduce hydroelectric power.

• Community Impact and Relocation Issues: Coal mining projects, funded by Chinese investors, are displacing over 500 families. These communities face pollution and health risks, and are asking for proper resettlement and support.
• Economic Outlook for the Mining Sector: Zimbabwe’s mining sector is facing tough times in 2024. It might result in revenue drops of 10% due to lower global commodity prices and ongoing power shortages

Key reasons to invest in diamond mining in Zimbabwe

1. Zimbabwe has large diamond deposits. The Marange fields are among the richest globally. The country has both alluvial and kimberlite diamonds.  
2. Zimbabwe produces high-grade gem and industrial diamonds. Demand is strong in global markets. The quality ensures competitive pricing.  
3. Jewelry and industrial sectors drive demand. Asia and the Middle East are key buyers. Supply constraints boost diamond prices.   
4. Zimbabwe promotes local diamond processing. New cutting and polishing facilities are opening. Value-added production increases profitability. 

Latest Developments

• Production and Economic Impact: In 2023, Zimbabwe was the world’s seventh-largest diamond producer. It contributed 3% of global production. Diamond exports increased by 13% in 2022. Experts predict exports may drop by 3.58% each year until 2027.

• Regulatory and Operational Developments: In February 2023, Zimbabwe’s government suggested a new mining rule to bring in investors. It was not approved before Parliament closed. The state-owned Zimbabwe Consolidated Diamond Company (ZCDC) is looking for new diamond areas. It plans to open more mines soon.
• Social and Environmental Concerns: People in the Marange region say diamond mining is hurting their rights and the environment. The Marange Development Trust is helping them take legal action. The Zimbabwe Diamond and Allied Minerals Workers Union is urging authorities to ensure companies follow labor laws.

In conclusion, Zimbabwe’s mining sector presents great opportunities for investors. The country has rich reserves of gold, platinum, lithium, chrome, coal, and diamonds. Government policies are favorable, and the country’s strategic location adds value. Despite challenges such as infrastructure and power issues, progress can be expected in the near future.  The mining sector continues to grow with strong investment prospects. With government support, the sector plays a key role in Zimbabwe’s economic growth. Hence, it is high time to invest in Zimbabwe’s mining sector and contribute to the country’s ongoing growth with pride!